As Taiwan does not have a free-trade agreement with the US, its tariff structure has long been at a disadvantage, while Japan and South Korea have largely enjoyed zero-tariff treatment, Kung said. Minister of Economic Affairs Kung Ming-hsin answers questions from members of the media regarding the Taiwan-US trade deal in Taipei yesterday. Photo: Ann Wang, ReutersThe deal places Taiwan on par with Japan and South Korea, as all three are now subject to a 15 percent tariff, he said. The outcome also helped stabilize industry expectations regarding the results of the US’ Section 232 investigation, Kung said. Meanwhile, US companies are also expected to expand investment in Taiwan, targeting defense, drones, smart robots, quantum technology and biotechnology, in addition to chips and AI, Kung said.

Source: Taipei Times January 16, 2026 16:14 UTC